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Money and Banking A-Youdecide to invest in the stock market for 6 years as you save for your kids to go to college.Thestock you want
Money and Banking
A-Youdecide to invest in the stock market for 6 years as you save for your kids to go to college.Thestock you want to invest in is currently selling for $100 per share. Given that you need to earn12%return on the $20,000 you have to investtoday,what price are you expecting to sell the stock for in6 years if the stock normally pays a $2/share annualdividend?
B-What would the stock price from A be if dividends grow by 3% peryear?
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